Trade Idea Wrap-up: EUR/USD – Buy at 1.0675

EUR/USD – 1.0700

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 1.0672

Kijun-Sen level                  : 1.0669

Ichimoku cloud top             : 1.0633

Ichimoku cloud bottom      : 1.0630

New strategy  :

Buy at 1.0675, Target: 1.0775, Stop: 1.0640

Position : –

Target :  –

Stop : –

The single currency has surged again after brief pullback and current break of resistance at 1.0670-78 resistance signals the erratic rise from 1.0570 low is still in progress and upside risk remains for further gain to 1.0710 (100% projection of 1.0570-1.0678 measuring from 1.0602), however, near term overbought condition should prevent sharp move beyond 1.0735-38 (1.236 times projection and 50% Fibonacci retracement of 1.0906-1.0570), price should falter well below 1.0775-80 (61.8% Fibonacci retracement, bring retreat later.

In view of this, would not chase this rise here and would be prudent to buy euro on pullback as the Tenkan-Sen (now at 1.0674) should limit downside. Only below support at 1.0635 would abort and signal an intra-day top is formed instead, risk weakness towards 1.0602 support.